Question : ______ A/C is opened for disposing of all the assets of firm and making payment of all the liabilities.
Option 1: Revaluation
Option 2: Profit and Loss Suspense
Option 3: Realisation
Option 4: Profit and Loss Appropriation
Correct Answer: Realisation
Solution : For the purpose of selling all of the company's assets and paying off all of its liabilities, a Realisation Account has been formed. Hence, the correct option is 3.
Question : Increases and decreases in the value of assets and liabilities are recorded through
Question : Realisation A/c is prepared to ascertain the _________
Question : What are the important objectives of preparing realisation account -
(A) To close all the books of account.
(B) To record transactions relating to the sale of assets and discharge of liabilities.
(C) To determine profit or loss due to the
Question : -----------------account is prepared at the time of dissolution.
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